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Now in its seventh edition, this classic textbook introduces a new co-author, James E. Rauch. Maintaining the unique structure that the book has established over the last 35 years, Rauch has revised and updated this edition to strengthen the analytical and quantitative dimensions and to clarify contemporary and future problems of development policy. The coauthors integrate the most insightful materials in this wide-ranging field, offering students the opportunity to experience a variety of perspectives while helping them to keep sight of overarching themes. The new edition contains two new chapters, 'Income Distribution' and 'Development and the Environment.' It also consolidates material from the previous edition and increases the number of selections from leading professional journals. The selections, exhibits, and the authors' own overviews, notes and comments make greater use of empirical analysis as well as modern economic theory. The book gives an ideal overview of the interplay between development experience, the changing views of economists, and development policy.